Vodafone Idea said the telecom sector is being taxed like non-essential items such as liquor and cigarette, instead of being treated as a critical infrastructure. “We have got customs duty at 23%, GST at 18%. We paid lot of money for the spectrum. On top of that, you pay SUC (spectrum usage charge), USOF charges and other charges," Vodafone Idea CEO Balesh Sharma said. Vodafone Idea has debt of around Rs 1.2 lakh crore. Spectrum related payments account for 80% of the current net debt of the company.
Vodafone Idea (VIL) has said that its promoter shareholders -- Vodafone group and Aditya Birla Group -- will participate for an amount of up to Rs 20,000 crore in the rights issue, instead of the previously announced amount of up to Rs 18,250 crore. The promoters and promoter group reserve the right to subscribe to additional rights issue shares to meet any under subscription in the Rights Issue up to the extent permitted by the SEBI.
Shares of India’s largest telecom operator, Vodafone Idea, climbed over 1% in morning trade on Wednesday as its Rs 25,000-crore rights issue opened today. The fundraising exercise is one of the largest by any company in the country. Meanwhile, Vodafone Idea has also paid Rs 6,277 crore to the government for the spectrum it had bought in auctions.
Foreign investors, including promoter Vodafone group, are likely to invest around Rs 18,000 crore in the rights issue of Vodafone Idea. The company's Rs 25,000 crore rights issue will open on April 10. Any foreign funding above Rs 5,000 crore requires Cabinet approval. The Cabinet had on February 28 cleared the company's FDI proposal. While Vodafone Group's entire funding will be considered as foreign investment in the rights issue, Aditya Birla Group may also route funds from its foreign entities.